In a bid to strengthen its industrial base, Nigeria has finalized a $1.2 billion contract with Chinese state-owned engineering giant CNCEC to overhaul a crucial gas processing facility vital to the nation’s aluminum production, according to a statement from the Petroleum Ministry.
The deal, signed between CNCEC and BFI Group—the primary investor in the Aluminum Smelter Company of Nigeria—marks a pivotal step toward revitalizing a once-thriving aluminum smelter. The plant has remained inactive for years due to prolonged legal battles and financial challenges, halting production and impacting the sector. This renovation will enable the facility to process up to 135 million standard cubic feet of gas daily, providing the capacity to produce around 300,000 tons of aluminum per year.
Nigeria’s Minister of State for Gas, Epkerikpe Ekpo, highlighted the broader economic implications of the project, stating that the revamped plant will allow the country to scale its aluminum production across multiple phases, enhancing its stature in both African and global markets. Ekpo added that with the restoration, the plant’s output is expected to increase, potentially reaching up to one million tons of aluminum annually, alongside generating 540 megawatts of electricity—a significant boost to the national grid.
This ambitious project is anticipated to not only create jobs but also to stimulate economic growth and reinforce Nigeria’s industrial and energy infrastructure. By bringing the aluminum smelter back online, Nigeria aims to position itself as a leading aluminum producer in Africa and a competitive player on the world stage.
